Which of the following are conditions that could encourage the use of revenue management?
A)Capacities are relatively fixed
B)Service is sold in advance
C)Variable and uncertain demand
D)All of the above
E)a and b

Question

Quizplus · Accepted Answer

Revenue management is most effective when capacities are fixed, service is sold in advance, and demand is variable and uncertain. All of these conditions can encourage the use of revenue management because they allow companies to strategically adjust prices and availability to maximize revenue. For example, an airline may use revenue management to vary prices based on time of day, day of week, and season to account for fluctuations in demand for flights.

Which of the Following Are Conditions That Could Encourage the Use